Government can intervene in the market through
a. Price floors
b. Price ceilings
c. Taxes
d. All the above
d
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In economic terminology, a normal good is a good
A) on which a monetary value cannot be placed. B) that is liked only by normal people. C) for which demand increases when price increases. D) for which demand increases when income increases.
When, in our analysis of the gains and losses from international trade, we assume that a particular country is small, we are
a. assuming the domestic price before trade will continue to prevail once that country is opened up to trade with other countries. b. assuming there is no demand for that country's domestically-produced goods by other countries. c. assuming international trade can benefit producers, but not consumers, in that country. d. making an assumption that is not necessary to analyze the gains and losses from international trade.
Which of the following was an unintended consequence of the subsidies and mandated expansion in output of gasoline produced from corn-based ethanol?
a. higher food and grain prices. b. a reduction in the demand for battery powered automobiles because of the low prices of gasoline produced from ethanol. c. sharply lower prices for feed grains because of a reduction in the demand for corn. d. a substantial reduction in crude oil prices because of the low-cost production of gasoline from ethanol.
Economists observed the following growth rates in the fourth quarter of 1995: real GDP = 2.8 percent; M1 = 7.8 percent; GDP deflator = 2.2 percent. Given this data, the growth of velocity was approximately
A. ?7.8 percent. B. ?5.0 percent. C. ?2.8 percent. D. ?2.2 percent. E. ?2.0 percent.